A monopolistically competitive firm that is incurring a loss will shut down if
A. price is less than average total cost.
B. marginal revenue is less than marginal cost.
C. price is less than marginal cost.
D. revenues are less than variable costs.
Answer: D
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Capital goods are
A. long-lived goods used for producing other goods and services. B. excluded from GDP. C. the end products of production. D. publicly provided.
The table above provides cost data for a perfectly competitive firm producing toy cars. The firm is producing non-divisible goods. If the market price is $70 and the firm is a profit maximizer, the firm can earn a maximum economic profit of ________
A) a loss of $500 B) a loss of $10 C) a loss of $510 D) $210
The longest economic expansion in the United States occurred during the
A) 1940s. B) 1960s. C) 1980s. D) 1990s.
Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from $100 to $150 per hour, the quantity of hours they spent delivering training services fell from 45 to 40 hours per week. The demand for their services is:
a. elastic, with a price elasticity coefficient greater than one. b. elastic, with a price elasticity coefficient less than one. c. inelastic, with a price elasticity coefficient greater than one. d. inelastic, with a price elasticity coefficient less than one.